Montenegro Court Rejects Do Kwon Extradition Appeal
Montenegro’s Constitutional Court has rejected Terraform Labs co-founder Do Kwon’s appeal against extradition. The decision removes a significant legal hurdle in the extradition process.
The decision was reportedly unanimous. It pointed out legal flaws in Kwon’s appeal and affirmed a previous ruling in favor of extradition.
The case has now been handed over to Montenegro’s justice minister, who will decide whether to extradite Quan to South Korea or the United States. Korean Report Suggesting that extradition to the United States is more likely reflects the Justice Department’s position.
Both countries want to press charges against Kwon related to the collapse of the Terraform Labs crypto ecosystem, which involved TerraUSD and Luna coin. The May 2022 crash caused the market to lose approximately $40 billion, making it one of the worst crashes in financial history.
Most notably, the crash UST stablecoin began the infamous Cryptocurrency Winter 2022. Knock-on effects expose shortcomings at other major institutions Platforms such as FTX and Celsius. This has led to regulatory scrutiny of stablecoins Decentralized Finance worldwide.
Time goes back to March 2023, Quan arrested in Montenegro when trying to travel with someone forged passport. Due to the seriousness of the matter, his extradition case is seen as a potential precedent for cross-border enforcement of cryptocurrency-related crimes.
Largest financial settlement in SEC history
As early as June 2024, Terraform Labs reaches settlement with SECagreed to pay $4.47 billion. The settlement includes $3.6 billion in forfeiture penalties, $420 million in civil penalties and $467 million in prejudgment interest.
In addition, Do Kwon himself was ordered to pay a fine of more than $200 million. This includes $110 million in forfeiture penalties, $80 million in civil penalties and $14.3 million in interest.
At the same time, reports surfaced that Quan was suspected of having political connections in Montenegro. In 2023, the country’s prime minister called for an investigation into claims: Kwon has financial ties to political opponents.
Quan reportedly supports the “Europe Now” party led by Milojko Spajic. His support has raised questions about the potential impact on the extradition process.
Overall, the court’s ruling brings Kwon closer to justice while highlighting the challenges of international legal harmonization in the cryptocurrency space.
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